Vol. XXII, No. 149 [ BusinessWorld Online ]
Monday, March 2, 2009 | MANILA, PHILIPPINES
CEBU CITY — Almost half of business leaders who responded to a survey conducted by the Cebu Economic Advisory Group said they expect the Philippine economy to worsen this year.
The survey, conducted last Jan. 20-Feb. 13, showed that nearly half of the survey’s respondents expected the Philippine economy to worsen, with:
* 56% expecting the volume of exports to go down;
* 48% projecting a decrease in the volume of imports;
* 40% expecting a slowdown in business activity; and
* 36% seeing generally worse economic conditions.
Still resilient?
Still, the same survey showed that 28% of the respondents expected an improvement in economic conditions and 34% expect no change in the situation.
Most respondents expected no change in terms of capacity utilization, average selling prices of goods/services, work force, and investment in buildings, equipment, the advisory group said in a statement.
Geronimo D. Sta. Ana, chairman of the advisory group, said the accomplished survey forms comprised less than 20% of the target 150 respondents.
But he said all 11 business organizations that form the Cebu Economic Advisory Group were represented.
Another survey will be conducted next quarter, he said.
Mr. Sta. Ana added that despite the gloomy outlook of many respondents, he was confident that Cebu would be less affected by the global crisis.
"Obviously, the industrial and the export sectors are the most badly hit. Considering, however, their expectations on the volume of business activity, capacity utilization, work force, and investment in buildings, equipment, and others, it appears that Cebu can be expected to remain a relatively resilient economy in 2009," Mr. Sta Ana said in a statement.
Response
Clarito Fruelda, vice-president for external affairs of the Cebu Chamber of Commerce and Industry, told reporters that the chamber will roll out measures in response to the survey’s findings.
"We will formulate actions on how to help the weak sectors, particularly the export industry, and further develop our strong sectors such as BPOs [business process outsourcing] and tourism," said Mr. Fruelda.
He added that the group will coordinate with the Labor and Trade departments, as well as with the Technical Education Skills and Development Authority to provide alternative livelihood for retrenched workers.
The survey also cited the peace-and-order situation, traffic, power and water utilities rates, wages, real estate prices or rent, governance, number of job openings and number of tourist arrivals as top business concerns in Cebu.
Aside from the Cebu chamber, other groups under the Cebu Economic Advisory Group include the Japanese Chamber of Commerce and Industry-Cebu, European Chamber of Commerce in the Philippines-Cebu desk, American Chamber of Commerce in the Philippines-Cebu, Mactan Export Processing Zone Chamber of Exporters & Manufacturers, Financial Executives Institute of the Philippines-Cebu chapter, and Cebu Bankers Club. — Regina T. Aguilar
